Kansas Statutes 40-3003. Persons provided coverage; policies and contracts specified
Terms Used In Kansas Statutes 40-3003
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- association: means the Kansas life and health insurance guaranty association created under Kan. See Kansas Statutes 40-3005
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- person: means any individual, corporation, partnership, association, voluntary organization or provider;
(k) "policyholder" and "contract holder" means the person who is identified as the legal owner under the terms of the policy or contract or who is otherwise vested with legal title to the policy or contract through a valid assignment completed in accordance with the terms of the policy or contract and properly recorded as the owner on the books of the insurer. See Kansas Statutes 40-3005
- resident: means any person who resides in this state at the time a member insurer is determined by court order to be an impaired or insolvent insurer and to whom a contractual obligation is owed. See Kansas Statutes 40-3005
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Kansas Statutes 77-201
- structured settlement annuity: means an annuity purchased in order to fund periodic payments for a plaintiff or other claimant in payment for or with respect to personal injury suffered by the plaintiff or other claimant, but excludes an annuity policy or contract awarded pursuant to Kan. See Kansas Statutes 40-3005
(a) This act shall provide coverage, for the policies and contracts specified in subsection (b), for:
(1) Persons who, regardless of where they reside, except for nonresident certificate holders under group policies or contracts, are the beneficiaries, assignees, payees or providers of the persons covered under paragraph (2); and
(2) persons who are owners of or certificate holders under such policies or contracts other than structured settlement annunities, and who:
(A) Are residents;
(B) are not residents, but only with respect to an annuity contract awarded pursuant to Kan. Stat. Ann. §§ 60-3407 or 60-3409, and amendments thereto, an annuity contract for future economic loss procured pursuant to a settlement agreement in a medical malpractice liability action, as defined by Kan. Stat. Ann. § 60-3401, and amendments thereto, or fixed-return accounts of the Kansas public employees deferred compensation plan under Kan. Stat. Ann. §§ 74-49b08 through 74-49b14, and amendments thereto; or
(C) are not residents, but only under all of the following conditions:
(i) The insurers which issued such policies or contracts are domiciled in this state;
(ii) the states in which such persons reside have one or more associations similar to the association created by this act;
(iii) the persons are not eligible for coverage by an association in any other state due to the fact that the insurer was not licensed in the state at the time specified in the state’s guaranty association law.
(3) (A) Paragraphs (1) and (2) of this subsection shall not apply to structured settlement annuities.
(B) Except as provided in paragraphs (4) and (5) of this subsection, this act shall provide coverage to a person who is a payee under a structured settlement annuity, or beneficiary of a payee if the payee is deceased, if the payee:
(i) (a) Is a resident, regardless of where the contract holder resides; or
(b) is not a resident, but only under both of the following conditions:
(1) The contract holder of the structured settlement annuity is a resident; or
(2) the contract holder of the structured settlement annuity is not a resident; but:
(A) The insurer that issued the structured settlement annuity is domiciled in this state; and
(B) the state in which the contract holder resides has an association similar to the association created by this act; and
(ii) neither the payee or beneficiary nor the contract holder is eligible for coverage by the association of the state in which the payee or contract holder resides.
(4) This act shall not provide coverage to a person who is a payee or beneficiary of a contract holder resident of this state, if the payee or beneficiary is afforded any coverage by the association of another state.
(5) This act is intended to provide coverage to a person who is a resident of this state and, in special circumstances, to a nonresident. In order to avoid duplicate coverage, if a person who would otherwise receive coverage under this act is provided coverage under the laws of any other state, the person shall not be provided coverage under this act. In determining the application of the provisions of this paragraph in situations where a person could be covered by the association of more than one state, whether as a contract holder, payee, beneficiary or assignee, this act shall be construed in conjunction with other state laws to result in coverage by only one association.
(b) This act shall provide coverage to the persons specified in subsection (a) for direct, nongroup life, health, or annuity policies or contracts, supplemental contracts or unallocated annuity contracts covering individuals participating in a governmental deferred compensation plan established under section 457 of the U.S. internal revenue code pursuant to Kan. Stat. Ann. §§ 74-49b08 through 74-49b14, and amendments thereto, whether or not a resident, or the beneficiaries of each such individual if deceased, and for certificates under direct group policies and contracts issued by member insurers, except as limited by this act.